Correlation Between Angel Oak and Foxby Corp
Can any of the company-specific risk be diversified away by investing in both Angel Oak and Foxby Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Angel Oak and Foxby Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Angel Oak Financial and Foxby Corp, you can compare the effects of market volatilities on Angel Oak and Foxby Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Angel Oak with a short position of Foxby Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Angel Oak and Foxby Corp.
Diversification Opportunities for Angel Oak and Foxby Corp
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Angel and Foxby is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Angel Oak Financial and Foxby Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foxby Corp and Angel Oak is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Angel Oak Financial are associated (or correlated) with Foxby Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foxby Corp has no effect on the direction of Angel Oak i.e., Angel Oak and Foxby Corp go up and down completely randomly.
Pair Corralation between Angel Oak and Foxby Corp
If you would invest 1,188 in Angel Oak Financial on August 31, 2024 and sell it today you would earn a total of 90.00 from holding Angel Oak Financial or generate 7.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
Angel Oak Financial vs. Foxby Corp
Performance |
| Timeline |
| Angel Oak Financial |
| Foxby Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Angel Oak and Foxby Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Angel Oak and Foxby Corp
The main advantage of trading using opposite Angel Oak and Foxby Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Angel Oak position performs unexpectedly, Foxby Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Foxby Corp will offset losses from the drop in Foxby Corp's long position.| Angel Oak vs. Eaton Vance National | Angel Oak vs. Invesco High Income | Angel Oak vs. Blackrock Muniholdings Ny | Angel Oak vs. Nuveen California Select |
| Foxby Corp vs. Aberdeen International | Foxby Corp vs. Bimini Capital Management | Foxby Corp vs. Eagle Capital Growth | Foxby Corp vs. Western Asset Municipal |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
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